Hong Kong Firm Sells Panama Canal Stake to BlackRock, Making It Majority Owner Amid Trump’s Pressure to Curb Chinese Influence
BlackRock announced the $22.8 billion deal with CK Hutchison’s subsidiary Hutchison Port Holdings, which will see the firm acquire the Panama ports of Cristobal and Balboa, which are located at the Atlantic and Pacific ends of the canal, respectively. It will also acquire Hutchison’s controlling interest in 43 ports in 23 other countries.
The world’s largest asset manager will partner with Terminal Investment Limited (TiL) to operate the ports in concert with the BlackRock subsidiary Global Infrastructure Partners (GIP).
“This agreement is a powerful illustration of BlackRock and GIP’s combined platform and our ability to deliver differentiated investments for clients,” BlackRock CEO Larry Fink said. “These world-class ports facilitate global growth. Through our deep connectivity to organizations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled our clients can participate in this investment.”
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Frank Sixt, CK Hutchison co-managing director, said the transaction was the “result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received” and added that the deal should deliver cash proceeds in excess of $19 billion to the group.
“I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports,” Sixt added.
“China is getting kicked out of Panama and America is winning. Thank you, President Trump. MAGA!” wrote House Foreign Affairs Committee Majority.
https://www.foxbusiness.com/economy/blackrock-purchase-panama-canal-ports
WTF